BILL ANALYSIS
SB 977
Page 1
Date of Hearing: June 30, 2010
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cameron Smyth, Chair
SB 977 (Hollingsworth) - As Amended: May 19, 2010
SENATE VOTE : 35-0
SUBJECT : Redevelopment: Redevelopment Agency of the County of
Riverside.
SUMMARY : Allows the Redevelopment Agency of the County of
Riverside to include territory that is now part of the Cities of
Menifee, Wildomar, or Indio if, prior to incorporation or
annexation of these cities certain conditions were met.
Specifically, this bill :
1)Requires the territorial jurisdiction of the Redevelopment
Agency of the County of Riverside (Agency) to include all of
the following:
a) Former Agency territory within the geographic boundaries
of the City of Menifee or the City of Wildomar if, prior to
the incorporations, the Agency:
i) Entered into a binding agreement with a third party
to produce affordable housing; and,
ii) Acquired land or otherwise expended money from its
Low- and Moderate-Income Housing Fund.
b) Territory currently within an island of unincorporated
territory that is surrounded or substantially surrounded by
the City of Indio, after the city's annexation of that
territory, if, prior to that annexation, the Agency:
i) Entered into a binding agreement with a third party
to produce affordable housing; and,
ii) Acquired land or otherwise expended money from its
Low- and Moderate-Income Housing Fund.
2)Provides that the provisions of this bill apply retroactively
and prospectively to the territory described above.
SB 977
Page 2
3)Allows the Agency to apply housing built in the territory
described above to its affordable housing obligation.
EXISTING LAW :
1)Finds and declares that the fundamental purpose of
redevelopment is to expand the supply
of low- and moderate-income housing, expand employment
opportunities for jobless, underemployed low-income persons,
and to provide an environment for the social economic and
psychological growth and well-being of all citizens.
2)Requires 20% of all tax increment funds allocated to a
redevelopment agency must be used for the purpose of
increasing, improving and preserving the community's supply of
extremely low-, very low-, low- and moderate-income housing
unless the agency makes findings that the housing is not
needed.
3)Allows agencies to exercise any or all of its powers to
construct, rehabilitate or preserve affordable housing for
low- and moderate-income persons including: donate real
property, finance insurance premiums, construct buildings or
structures, acquire buildings or structures, rehabilitate
buildings or structures, provide subsidies to low- and
moderate-income persons, and maintain the communities supply
of mobilehomes.
4)Provides that the housing element shall consist of an
identification and analysis of existing and projected housing
needs and a statement of goals, policies, quantified
objectives, financial resources, and scheduled programs for
the preservation, improvement, and development of housing.
FISCAL EFFECT : None
COMMENTS :
1)County boards of supervisors govern 31 of the 425
redevelopment agencies. A county redevelopment agency's
territorial jurisdiction is the county's unincorporated area.
The territorial jurisdiction of a county redevelopment agency
includes all of the unincorporated territory that was in a
county's redevelopment project area, even if a city
subsequently annexes the territory or a new city incorporates
SB 977
Page 3
on top of the county's redevelopment project area. There are
procedures for counties to transfer control over their project
areas to the annexing city or the new city.
2)The Agency has five project areas. In 2008, the new cities of
Menifee and Wildomar incorporated on top of parts of Riverside
County's (County) existing project areas. Before these
incorporations, however, County redevelopment officials
acquired land outside of their project areas and signed
agreements with a developer to build senior low-income
apartments in Menifee (Vineyards) and Wildomar (Tres Lagos).
County officials approved the apartment developments before
the incorporations took effect.
Because the properties are inside the new cities, but outside
of the County's redevelopment project areas, County
redevelopment officials lack the authority to continue with
the apartment developments. They want a legislative
declaration that the County Redevelopment Agency's territory
still includes those properties, so that they can finish the
apartments.
3)The Agency closed a mobilehome park and relocated the former
tenants who used to live in an island of unincorporated
territory surrounded by the City of Indio. To replace the old
mobilehome park, County redevelopment officials are promoting
the development of an 81-unit affordable apartment project.
Riverside County and Indio city officials are cooperating to
annex most of the unincorporated island to the City. The
Riverside Local Agency Formation Commission will act on the
proposed annexation in late 2010. However, this
unincorporated island is not within one of the County
Redevelopment Agency's project areas.
Because the site will be within the City of Indio, but outside
of the County's redevelopment project areas, County
redevelopment officials will lose the authority to continue
with the apartment development. They want a legislative
declaration that the County Redevelopment Agency's territory
still includes that property, so that they can finish the
apartment project.
SB 977 declares that the territorial jurisdiction of the
Agency includes territory that is surrounded by the City of
SB 977
Page 4
Indio where, before its annexation by Indio, the Agency: (1)
entered a binding agreement with a third party for affordable
housing, and (2) acquired land or spent money from its Low and
Moderate Income Housing Fund.
4)Support Arguments : Supporters argue without transferring
these properties into the jurisdiction of the Agency many of
the projects that were scheduled to occur would not be able to
come to fruition.
Opposition Arguments : None at this time.
5)This bill was double-referred to the Committees on Housing and
Community Development, where it passed with a 9-0 vote on June
16, 2010, and to Local Government.
REGISTERED SUPPORT / OPPOSITION :
Support
County of Riverside [SPONSOR]
Cities of Indio, Menifee, and Wildomar
Opposition
None on file
Analysis Prepared by : Katie Kolitsos / L. GOV. / (916)
319-3958